CCPI eases in Feb. 2026

Tuesday, 3 March 2026 06:33 - - {{hitsCtrl.values.hits}}

Headline inflation, as measured by the year-on-year (YoY) change in the Colombo Consumer Price Index (CCPI), decelerated in February 2026 since picking up in January after three months of stability.

The Central Bank of Sri Lanka (CBSL) on Friday said headline inflation YoY decelerated to 1.6% in February 2026, down from 2.3% in January, and 2.1% in October, November and December 2025.

Food inflation YoY was down to 0.2%, down from 3.3% in January, 3% in December and November, and down from 3.5% in October.

Non-food inflation YoY however accelerated in February 2026, up from 1.8% in January 2026 and December 2026, 1.7% in November and 1.4% in October.

On a month-on-month basis, the CCPI reported a 0.85% YoY decrease, compared to an increase of 0.59% in January, up from 1.26% in December, after having decreased by 0.23% in November.

The food category contributed 0.86 percentage points to this decrease, while the non-food category contributed 0.01 percentage points.

Core inflation decelerated to 2.1% in February, down from a 2.3% deceleration in January 2026 and 2.7% in December 2025.

“Inflation projections made at the monetary policy round in January 2026 indicate that inflation will gradually move towards the target of 5% by the second half of 2026, with the support of appropriate policies,” the CBSL.

The CBSL and Finance Ministry are facing escalating criticisms that the 5% inflation rate target is too high and intolerable, and a review of the target is

ongoing.